No. I do not believe that organizations should “rank-and-yank” and see that as a solution to evaluate and improve the performance of their employees, simply because it motivates risk-taking at both ends of the performance spectrum. Organisations, using a “rank-and-yank” system, are effectively encouraging their employees to take on a high-risk behaviour. Employees who are doing very well and have an excess of slack resources may tend to take mid-to-high risk as they seek to better themselves, seeing that should they lose, they will still be safe from the yanking. On the flip side, employees who are looking at survival will tend to play up their risk, seeing that since they are already at the survival stage, it is “do or die” for them.

The presence of a time-bound goal with the “rank-and-yank” system only aggravates the situation of excessive risk taking by employees. When top performers see that time is limited, they tend to think that they will probably not lose much by taking on higher risk. Conversely, low performers facing termination would take on very high risk to “put in their best fight”. Only employees who are doing average have minimized risk taking behaviors.

This will, of course, bring to light the question of whether risk is good for an organization. Many a time, we see organizations trying their very best to diversify risk. They develop new markets for existing products and venture into new areas of business – all in a bid to minimize their risk. It is hence ironic to see that they are actually adding on the element of risk – something they have tried very hard to curtail. Perhaps the “rank-and-review” is probably a much better option for organizations like GE and AIA to consider.

You May Also Find These Documents Helpful

...performance appraisals and their purpose have been subject to positive and negative feedback amongst employees, and outside critics. No matter how you look at performance appraisals, the existence of some form of rating system will ensure that the right people are in place to execute the strategy and maximize success. Some of the most common forms are ratings scales, 360–degree feedback and management by objectives (MBO). The most scrutinized of the different forms is a type of ranking format known as forced-ranking or ‘rank and yank.’ A closer look into the history of the ‘rank and yank’ system will be provided along with detailed information of the how it works. Opinions and views will be shared so as to determine whether it’s a system that coincides with the definition of a performance appraisal.
The rank and yank system was designed and implemented by Jack Welch when he performed his duties as the CEO for General Electric (GE). Rank and yank is a forced-ranking system that is an employee performance review system where workers within groups or departments are rated best to worst with the lowest ranked workers either terminated or considered for termination (American Business). Each year, employees are ranked in a distribution of 20-70-10. Twenty percent of the employees received stars as a performance ranking while 70 percent were “acceptable”...

...demonstrated, as an aside, during one of the popular TV cooking shows. Soon all the home-cooks are rushing out to buy one. With sales going up, the manufacturer decides to improve the coffee mug. Oops. Unless the manufacturer acknowledges that the purchaser decides the purpose, it will make a better coffee mug, and not a better scone-cutter. Sales will fall because ‘Purpose’ was unclear.
BUT – it’s never as simple as that. Perhaps there are more sales available when the coffee drinkers discover the unique thermal properties that keep coffee hotter on the inside, while the outside remains cool to hold. So in this case, the organisation needs to educate the customer about the purpose of the mug.
Perhaps it doesn’t matter who defines the ‘Purpose’ so long as both sides eventually understand and agree with it. Without alignment between organisation and customer, meaning agreement with the ‘Purpose’, there will be no business transaction.
The following two excerpts have not been edited or altered.
“Knowledge self-organises around organisational purpose. Without a North Star for knowledge, it's impossible to focus on what is needed” (Allee, 1997). 12 principles of knowledge management. Training & Development, 51(11), 71.
Determining the Firm's Purpose or Vision: The task of determining the direction of the firm rests squarely on the CEO's shoulders. Joe Gorman, TRW's CEO, believes that the top manager, often working...

...automatically cure all your tummy troubles and just because it’s fat free does not mean that it is a weight loss aid. However, it will help to improve your intestinal and digestive functions over a period of time and eating fat free yogurt is a great snack if you are watching your weight as it’s full of fruit and goodness without the fat content and high calorie count. So why not combine the two benefits and enjoy a great tasting yogurt at the same time?
Contains real fruit, sugar and sweeteners.
lessSainsbury active yogurt assortment is one of the most popular assortments according to their Supermarket.
Demonstrate how buyer behaviour affects marketing activities in different buying situations in Sainsbury:
Different buying behaviors should be recognized in a marketing plan.
Buying behavior’ is made up of the internal and external factors that explain why consumers buy and use certain products or services. This type of behavior can affect the marketing that a business employs to promote its products, and when this behavior is analyses, it can guide a business toward better marketing strategies and methods that it might not have originally used. However Sainsbury a big supermarket in that rejoins their all time negotiation vireos type’s of customer and some time their face problem for some buyer behavior. In billow show some example, how buyer behavior affects Sainsbury marketing activities.
* Cultural: Sainsbury British shops for that...

...Organizational Behavior
Personality Profile
Joris van Kleinwee
IBA-Group: 9
ANR: 709585
Personality Profile: Joris van Kleinwee Each person is characterized by certain habits, characteristics and features they have inherited or were acquired due to events in their lives. These factors determine the personality profile of a certain person and each different personality will have a certain impact in an organization or more specifically in a group. In this report my own personality profile will be presented by the results of a questionnaire, this questionnaire is a device used to give an indication of the big five factors: openness, conscientiousness, extraversion agreeableness and neuroticism which will all together describe my personality profile. These results will be thoroughly compared with context of existing scientific literature which will then determine my own personal profile. Firstly the results of my questionnaire will be discussed by comparing them with the existing personality profiles, followed by an observation of the affects my personality would have in a group. Lastly, I will discuss the key strengths and/or weaknesses of my personality with current literature in this scientific field and will then conclude all observations. The results of the BIG-Five questionnaire were more or less as I expected (geen goede topic sentence aangezien de...

...The Importance of Rank Structure in the Marine Corps
Rank structure is important to the Marine Corps because it form one of the fundamental backbones of military service. Many believe that with rank structure the Marine Corps or any other military organization could not function. This is has been proven fact over the centuries by the countless of mob armies that has arisen in history of the fall apart because they had no clear leadership.
One of the ways that rank structure is important is that it is like a link of chains. This chain forms a link between the highest officer to the lowest of the enlisted. This chain allows for the anywhere in the chain of command for an order to be issued and it will go down the chain to the level at which it needs to be accomplished. Also it allows for the those at the bottom know who they may bring grievances to. It also allows for the smooth operation of many assorted tasks to be accomplished efficiently and quickly. But this chain become weakened when someone does not follow the chain up the through the command for grievances or does not follow the orders of those who are placed above them. By not following orders or by trying to go around those who are placed above them, they cause others to see that the rank structure is unimportant and this causes the rank structure to breakdown and eventually lead to chaos and anarchy.
Another way in...

...﻿Why shouldorganisations collect, file and maintain accurate financial records?
To have a record of how the business is running. This allows us to determine how the business is sitting financially and display what money is going where and whether there is room for improvement. Basically, it is used to anaylse the business as a whole and to determine performance for both employees and for the organisation.
What are the expectations of managers and supervisors in relation to budget or financial plans?
Managers and supervisors should understand financial information relating to costs, operations, assets, credit analysis, GST transactions, inventory management, invoices and accounts, ect. This will allow them to monitor and control cash flow, production and productivity, solve problems, plan improvements, implement quality control procedures and plan future strategies. They should also understand how financial KPIs and appropriate record keeping systems fit with taxation and other legal requirements and educate the process/ responsibilities to their staff.
What are the reports that can be used for financial planning in an organisation?
Profit and Loss Balance sheet Revenue and Expenditure report Cash flow statement Debtors and Creditors reports
What is the process for preparing budgets or other financial plans?
1. Identify data that needs to be collected. 2....

...big data analytics market earned revenues worth $3.2 billion in 2013 and it is predicted that this will increase to $15 billion by 20203. Vendors are putting substantial investments into research and development, as well as potential acquisitions.
1.5 Technology Sector:
Mu Sigma operates in an environment where technology plays a crucial role in predicting the future roadmap of the company. There is an increasing use of advanced analytics, especially predictive modelling, machine learning techniques, and neural networks. The data revolution is disrupting established industries and business models. BMW uses sensor-data (predictive modelling) to tell its customers when their cars need to be serviced, for example.
2. Structure of the organisation
2.1 Structural Dimension
Formalisation:Company has low to medium level of formalization. The amount of written documentation related to policies and procedures are bare minimum, though with period of time, number of formal rules have increased, but still it remains an open culture company.
Specialisation: Mu sigma does not have division of labour on the basis of specialisation. This means that the specialisation is low and employees perform wide range of tasks in their jobs. There is a lot of flexibility for the employees to use their expertise, ranging from training, recruitment to business development in whichever field they want like airline/hospitality and entertainment, retail and consumer products,...